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Economy

Hydrocarbons Are The Backbone of Global Progress

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4 minute read

From the Frontier Centre for Public Policy

By Ian Madsen 

The use of hydrocarbons is a necessity for modern life.

Climate Crusaders claim that our society could do without oil and natural gas by proceeding to a Utopia of ‘Net Zero’ by 2050, extracting CO2 (carbon dioxide) emissions from the atmosphere. However, as the Canadian Energy Centre notes, that cherished goal cannot be realized.  This is true of fueling transport, heating or electric power, and all other uses of hydrocarbon fossil fuels.

People use oil and natural gas constituents for more than just burning.  They use them in every sector of the economy, including military equipment and non profit organizations such as universities and hospitals.

The main component is ethane, C2H6, a ‘natural gas liquid’, extracted from raw natural gas. Ethane is then converted to ethylene,  a versatile building block for many other chemicals, Other natural gas liquids, such as propane and butane, are generally used as fuel, in petrochemical productionand as some oil components.

Ethylene is used in various plastics, textiles, detergents and antifreeze. Plastics are used for containers, in countless household and industrial products, and tubing, filters, surgical masks, gloves, gowns, bandages, disinfectants and other medical products. Petrochemical-sourced materials are in the outer casing of medical devices and their components– important instruments such as blood diagnostics machines, DNA sequencers, MRI devices, ultra-sound and CAT and PET scanners.

Styrene, an ethylene end-product, makes synthetic rubber in tires. Synthetic rubber and related products are vital for the gaskets, seals, hoses and tubes in internal combustion, jet and diesel engines.  Diesel engines are used in long-distance trucks bringing food to supermarkets. They also power excavating equipment that mines ores to refine into metals, fire trucks, and other machines, such as combines and tractors, which are vital to agriculture.

Petrochemicals also go into polymer fabrics such as polyester, spandex, acrylic and ‘breathable’ fabrics used by themselves or with ‘natural’ materials such as wool, cotton, silk and linen to make a great variety of items like clothes, underclothes, athletic wear, waterproof or winter jackets, hosiery, belts, handbags, upholstery material, furniture coverings, lawn and garden furniture, slope-stabilizing geotechnical fabrics, retractable arenas’ roof coverings, bedding materials, curtains, drapes, and tablecloths.

The same for the construction industries. Such products include paints, solvents, lacquers, countertops, knobs, flooring, adhesives, abrasives, pipes, plumbing and lighting fixtures. Two major insulation products builders and renovators are compelled to add to homes and office buildings  make use of petrochemicals:  polyurethane foam and styrofoam. Plastics go into the insulation’s outer sheath and for house wrap.

Plastics and related synthetic materials are also used in the latest generation of high-insulation windows, solar panels and wind turbines. Hence, petroleum based products are crucial to climate crusaders’ goal of lower energy consumption.

Plastics indeed add to the garbage volumes people generate. But plastic trash is manageable. Current recycling programs are ineffective, says the journal Nature. Despite rampant alarmism,  waste-to-energy plastic destruction, as is bacterial digestion, is a viable alternative.

Petrochemicals and plastics make modern life possible. While substitutes are now under development, they are unlikely to become common anytime soon. So forbidding plastics would be detrimental, especially for emerging economies.  Petrochemicals and plastics derived from hydrocarbons are crucial to making less-developed nations healthy and prosperous.  Depriving them of that opportunity would be cruel and unnecessary.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy

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Business

Canada Scrambles To Secure Border After Trump Threatens Massive Tariff

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From the Daily Caller News Foundation

By Jason Hopkins

The Canadian government made clear its beefing up its border security apparatus after President-elect Donald Trump threatened to impose sweeping tariffs against Canada and Mexico if the flow of illegal immigration and drugs are not reined in.

Trump in November announced on social media that he would impose a 25% tariff on all products from Canada and Mexico unless both countries do more to limit the level of illicit drugs and illegal immigration entering into the United States. In response, Canada Prime Minister Justin Trudeau met with the president-elect at his residence in Mar-a-Largo and his government has detailed what more it’s doing to bolster immigration enforcement.

“We got, I think, a mutual understanding of what they’re concerned about in terms of border security,” Minister of Public Safety Dominic LeBlanc, who accompanied Trudeau at Mar-a-Largo, said of the meeting in an interview with Canadian media. “All of their concerns are shared by Canadians and by the government of Canada.”

“We talked about the security posture currently at the border that we believe to be effective, and we also discussed additional measures and visible measures that we’re going to put in place over the coming weeks,” LeBlanc continued. “And we also established, Rosemary, a personal series of rapport that I think will continue to allow us to make that case.”

Trudeau’s Liberal Party-led government has pivoted on border enforcement since its first days in power.

The Royal Canadian Mounted Police (RCMP) — the country’s law enforcement arm that patrols the border — is preparing to beef up its immigration enforcement capabilities by hiring more staff, adding more vehicles and creating more processing facilities, in the chance that there is an immigration surge sparked by Trump’s presidential election victory. The moves are a change in direction from Trudeau’s public declaration in January 2017 that Canada was a “welcoming” country and that “diversity is our strength” just days after Trump was sworn into office the first time.

While encounters along the U.S.-Canada border remain a fraction of what’s experienced at the southern border, activity has risen in recent months. Border Patrol agents made nearly 24,000 apprehensions along the northern border in fiscal year 2024 — marking a roughly 140% rise in apprehensions made the previous fiscal year, according to the latest data from Customs and Border Protection.

“While a change to U.S. border policy could result in an increase in migrants traveling north toward the Canada-U.S. border and between ports of entry, the RCMP now has valuable tools and insights to address this movement that were not previously in place,” read an RCMP statement provided to the Daily Caller News Foundation. “New mechanisms have been established which enable the RCMP to effectively manage apprehensions of irregular migrants between the ports.”

Trudeau’s pivot on illegal immigration enforcement follows the Canadian population growing more hawkish on the issue, public opinion surveys have indicated. Other polls also indicate Trudeau’s Liberal Party will face a beating at the voting booth in October 2025 against the Conservative Party, led by Member of Parliament Pierre Poilievre.

Trudeau’s recent overtures largely differ from Mexican President Claudia Sheinbaum, who has indicated she is not willing to bend the knee to Trump’s tariff threats. The Mexican leader in November said “there will be a response in kind” to any tariff levied on Mexican goods going into the U.S., and she appeared to deny the president-elect’s claims that she agreed to do more to beef up border security in a recent phone call.

Trump, who has vowed to embark on an incredibly hawkish immigration agenda once he re-enters office, has tapped a number of hardliners to lead his efforts. The president-elect announced South Dakota Gov. Kristi Noem to lead the Department of Homeland Security, former acting Immigration and Customs Enforcement Director Tom Homan to serve as border czar and longtime aide Stephen Miller to serve as deputy chief of staff for policy.

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Trudeau’s Economic Mismanagement Exposed: GDP Report Reveals Alarming Decline in Canadian Prosperity

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The Opposition with Dan Knight

The latest “Gross Domestic Product, Income, and Expenditure: Third Quarter 2024” report highlights six consecutive declines in GDP per capita & collapsing business investment

Good evening my fellow Canadians, and welcome to the final chapter of Canada as a thriving economy, brought to you courtesy of Justin Trudeau. The latest GDP report isn’t just a spreadsheet of bad news—it’s a grim look at the devastation Trudeau has unleashed on Canada’s economy.

Here’s what they won’t tell you: while Trudeau prances around on the world stage, preaching about climate change and “equity,” the average Canadian is getting poorer. GDP per capita—one of the most telling measures of prosperity—has now declined for six consecutive quarters, hitting levels not seen since 2017. Let that sink in. Under Trudeau’s leadership, Canadians are worse off today than they were seven years ago.


Canada’s GDP Growth: A Sluggish Economy Falling Behind

The latest figures from Statistics Canada’s Gross Domestic Product, Income, and Expenditure: Third Quarter 2024 report show an economy struggling to find its footing. Real GDP grew by 0.3% in Q3 2024, a slowdown from the 0.5% growth in the first and second quarters of the year. On an annual basis, GDP growth for 2023 was a modest 1.1%, further highlighting Canada’s weak economic momentum.

In real terms, Canada’s GDP as of Q3 2024 stands at $2,419,572 million (chained 2017 dollars). While the economy continues to expand, this growth pales in comparison to the nation’s surging population.


GDP Per Capita Declines: A Warning Sign for Canadians

Canada’s economic growth is not keeping pace with its rapid population expansion. In Q3 2024, GDP per capita—arguably the most important measure of economic health—declined by 0.4%, marking the sixth consecutive quarterly drop. With a staggering 3.2% population growth in 2023, Canada’s economy cannot sustain the same level of prosperity for its citizens.

Current GDP per capita is estimated at ~$54,000, down from its pre-pandemic high of ~$58,100 in 2017, and 2.5% below 2019 levels. To return to its long-term trend, GDP per capita would need to grow at an ambitious 1.7% annually for the next decade, a rate well above the recent average of just 1.1% per year since 1981.


Historical Context: Long-Term Prosperity Eroded

The report shows a troubling trajectory in inflation-adjusted GDP per capita over decades:

  • 1981: ~$36,900
  • 2017: ~$58,100
  • 2024: ~$54,000 (estimated due to consecutive declines).

Despite Canada’s resource wealth and economic potential, GDP per capita remains 7% below its historical growth trend, signaling systemic productivity and investment issues.


Key Drivers of GDP Growth in Q3 2024

The Q3 2024 report highlights the components influencing GDP growth:

  • Household Spending: +0.9%
  • Government Spending: +1.1%
  • Business Investment in Machinery and Equipment: -7.8%
  • Exports: -0.3%
  • Imports: -0.1%

While household and government expenditures provided some lift, the steep decline in business investment—down nearly 8%—and weaker exports reveal structural weaknesses in Canada’s economic model.


A Warning for the Future

These numbers tell a grim story: Canada’s economic growth, when adjusted for its population explosion, is failing to provide real benefits to its citizens. GDP per capita declines, stagnant productivity, and plummeting business investment highlight the challenges ahead. Without dramatic improvements in productivity, competitiveness, and fiscal policy, Canada’s long-term economic prospects remain precarious.


Trudeau’s Population Bomb

In 2023, Canada’s population grew by a jaw-dropping 3.2%, adding over 1.27 million people—the size of Calgary—in just one year. Trudeau’s open-door immigration policy is out of control. But here’s the kicker: the economy isn’t keeping up. GDP growth is crawling at 0.3%, while GDP per capita—the number that actually reflects living standards—has fallen 2.5% below pre-pandemic levels.

What does this mean? Trudeau is creating a country where there are more people, but less wealth to go around. He’s importing voters for his political base while ignoring the basic economics of supply and demand. More people mean more pressure on housing, healthcare, and infrastructure—all of which are already in crisis. Trudeau gets the photo ops, and Canadians get poorer.


Productivity? What’s That?

Here’s the real scandal: Canada’s productivity is collapsing, and Trudeau couldn’t care less. Business investment in machinery and equipment—a cornerstone of economic growth—dropped 7.8% in Q3 2024. That’s not a blip. It’s part of a long-term trend.

Under Trudeau, Canada has become hostile to business. With punishing taxes, endless red tape, and policies designed to appease radical activists, companies have stopped investing. They’re pulling back because they see no future in a country run by a trust-fund prime minister who treats the economy like his personal virtue-signaling playground.


Exports Collapse, Government Spending Soars

Exports fell 0.3% this quarter, after a 1.4% drop the quarter before. That’s Canada losing its competitive edge, plain and simple. While Trudeau waxes poetic about “green transitions,” other countries are eating Canada’s lunch.

Meanwhile, Trudeau’s solution to every problem is predictable: throw money at it. Government spending rose 1.1% in Q3 2024, marking the third consecutive quarterly increase. But this isn’t investment—it’s waste. It’s billions spent on flashy programs that do nothing to address Canada’s fundamental economic problems.


The OECD Warning Trudeau Ignores

Here’s a fact Trudeau won’t tweet about: The Organization for Economic Co-operation and Development (OECD) projects that Canada will have the lowest GDP per capita growth of all member countries through 2060. That’s Trudeau’s legacy: turning Canada into the slowest-growing economy in the developed world.

This isn’t just incompetence—it’s deliberate. Trudeau’s agenda isn’t about making Canada prosperous; it’s about centralizing power. His policies crush the middle class, drive businesses out, and create dependence on government handouts.


The Final Verdict

Justin Trudeau has managed to take one of the most resource-rich, opportunity-filled countries in the world and drive it into economic stagnation. He’s turned Canada into a welfare state for the many and a playground for the elite. GDP per capita is falling, productivity is collapsing, and the future looks bleak for ordinary Canadians.

Let’s be clear: Trudeau doesn’t care. As long as he’s jet-setting to global conferences, virtue-signaling about climate justice, and securing his legacy as the darling of the global elite, the suffering of everyday Canadians is irrelevant to him.

Canada deserves better. It deserves leadership that values hard work, economic freedom, and the dignity of a prosperous nation. And until Trudeau is gone, don’t expect any of that.

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